Why Vitol Is on Track to Exceed Its IMO Carbon Emission Target

Vitol is on track to exceed the International Maritime Organisation's (IMO) target of reducing carbon emissions in shipping by 40% compared to 2008. We spoke to Ian Butler , Head of Energy Transition for shipping about how Vitol is going to achieve this and what the future of cleaner shipping fuels might look like.

Vitol has set an ambitious target to hit the IMO’s 2030 carbon intensity reduction target of 40%, by 2024 – how we are able to achieve this?

We are in a really strong starting position with a modern fleet to exceed the trajectory set by the IMO. We did a full cost analysis of all the technology available and what would be the quickest and most cost-effective way to meet these targets. Examples of technologies we’ve invested in include:

• Installing propeller boss fin caps
• Retrofitting mewis ducts to improve the fluid dynamics around the propeller
• Upgrading ship software
• Advanced anti-foul paint to increase the ship efficiency as it cuts through the water
• Replacing all lightbulbs onboard vessels with LEDs

All of these are small incremental gains which we can build up to achieve 5-10% efficiencies on our vessels. You can see the impact of these measures in the picture of our vessel Elandra Bay, which has just sailed from dry dock. A new propeller and a mewis duct have been fitted, and the hull has been sandblasted and repainted with high performance anti-foul paint.

Why are we taking such a proactive role in pursuing these targets?

For a company like Vitol, we are a midstream company. Therefore, shipping represents our largest scope 3 emissions contributor, so our stakeholders are watching how we perform in this area. The creation of my role, as Head of Transition for shipping, shows that we are embracing change and being vocal about it.

What alternative fuels are we looking at to support decarbonisation?

The IMO wants to move away from heavy fuel oils to biogenic materials, such as biolng, methanol (e-methanol), or biomethanol. There are also ongoing discussions into green ammonia which is a zero carbon fuel but has trickier issues associated in how it is handled safely.

Not one single technology or future fuel will win, it will be a combination depending on the style of the ship. Smaller vessels may go to hydrogen, larger vessels may move to biofuels. There are even conversations around nuclear vessels coming in, but nuclear tends to scare people.

The industry needs to embrace alternative fuels. And Vitol needs to be part of that conversation as the biggest charterer of vessels in the world as well, as a big ship owner. We need to be prepared.

How effective do you think the IMO’s approach is?

The IMO is trying to find consensus amongst 170 nation state flags whose priorities are their own geopolitical policies rather than pursuing the 2015 Paris Agreement targets – which the shipping industry is going to be challenged to meet. Some member states are frustrated with a perceived lack of progress on decarbonisation targets, with the EU stepping out and deploying their own separate taxation measures.

Having said that, some of the measures the IMO have brought in have been very positively received such as reducing sulphur content in fuels and helping to protect marine life through ballast water treatment.

Shipping is classed as a hard to abate industry because the main form of propulsion is heavy fuel oil. It’s cheap, easy to store, relatively safe to transport and handle with a high calorific content. Finding alternatives to this will take time and will likely require a combination of solutions.